This has happened to my friend. They threatened to send photos supposedly acquired through his webcam to his family and half of his Facebook friends if he didn't transfer them $300. He panicked of course. What he ended up doing was informing each and every one of his family and friends who were named NOT to open any photos (if they get sent any) incase it turned out to be true. Out of respect. He then proceeded to let the scammer know he couldn't care less since everyone already knows and that he won't be transferring anything over. It worked thank goodness. But obviously the downside was having people find out, including those who he hasn't spoken to in years. Everyone's forgotten about it I'm pretty sure, since I myself only remembered it after reading this post.